(The Center Square) – Illinois lawmakers have approved the extension of tax increment finance, or TIF, districts throughout the state.
A TIF district sets aside the increment of increased property taxes from increased values over time in a separate fund that is then used to subsidize public and private developments in the district with the aim of increasing overall property values in that area. Illinois’ TIF program gives districts 23 years of operation, unless it’s extended.
Last week, the House voted 95-11 to pre-authorize 12-year renewals for eight TIF districts, including four in Chicago.
If the TIFs are not extended, the incremental funds would then go back to local taxing bodies like cities and school districts.
State Rep. Jeff Keicher, R-Sycamore, said the money could benefit the communities.
“We are giving these communities an offer to pass on that cost freely. That is costing our school districts significant revenues,” Keicher said during floor debate last week. “That money would go along towards helping the issues financially that we see in CPS and school districts throughout this state.”
Keicher said the process of renewing districts needs changing.
“It’s my grave concern that I see some of these TIFs being extended to 47 and 35 years from the original guideline there. I think we need to change the way we renew TIFs. We need to limit them to the first term,” Keicher said. “I think we need to support our school districts and thereby support a reduced property tax function.”
Illinoisans have among the highest property tax burdens in the nation.
